11/24/1997 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES NOVEMBER 24, 1997 1998 Budget - Council Member Lyden requested that the 1998 be approved with exception that use of reserves be eliminated and that the budget be amended by the new Council if it so desires. Mayor Landers pointed out that the final budget has not been approved, and will not be until December 4, 1997. Council Member Lyden stated that at its last work session Council directed that approximately $100,000 be slashed from the budget. Council Member Kuether disagreed. Council Member Bergeson explained that the recommended budget showed a deficit. Expenditures exceeded income by $79,000. The recommendation of Council members present at the budget work session was that the year not be started with a budget deficit, and that Staff come back with a balanced proposed budget. Additionally, two errors were discovered which, when corrected, represented an additional deficit of $10,000, making the total amount required to balance the proposed budget $89,000. Council Member Bergeson also stated that the members of the budget session determined the building permit revenue figure to be high, and recommended a reduction. An addition of $100,000 to the suggested contingency was also recommended, in order to accommodate potential personnel changes. Finally, the amount of money to be put into certificates for financing of City equipment was considered to be about twice as much as necessary; and, although this amount would not effect the 1998 budget, it was felt that the proposed amount would place an undue burden on future budgets. Staff was asked to come back with the entire list of approximately 250 items, presenting them in order of priority so that a reasonable amount can be determined. Council Member Bergeson added that all of these suggestions are subject to additional discussion. Council Member Kuether added that reconstruction on Black Duck Road was at issue. Council Member Bergeson added that Staff was asked to provide the amount of payment that would have to come from City funds for road improvements approved in the recent election, as well as the amount of the payment for the new City Hall and Police Department. He added that none of the payment for the City Hall and Police Department would come from City funds, but the road reconstruction figure remains to be finalized. Council Member Lyden indicated that any recommendation with respect to personnel changes is premature. He added that the issue of revenue from building permits should be discussed further. Kim Sullivan addressed Council, expressing her concerns with regard to the budget. She referred to a $400,000 tax break, stating that taxes cannot be cut to that extent without a complete and unacceptable loss. Council Members Kuether and Bergeson stated that there was no such tax cut. Council Member Bergeson indicated that there was a balancing of the budget and reallocation of expenditures, no tax cut. 18